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registration of legal entity

Cost of registration The cost of the second year Number of Directors Corporate tax rates Payment of Charter Capital Financial statements
1860.00 EUR 1130.00 EUR 1 25.00% 50000.00 Yes

Company registration in Madeira

The island of Madeira is an autonomous Portuguese territory. The archipelago of volcanic origin was discovered more than five hundred years ago. Nowadays Madeira is governed by its own government and controls the territory of 770 km2. The population of the island is approximately 270 thousand people.

Madeira is located 1000 km south of Portugal. The official language on the island is Portuguese. The capital city is Funchal.

In Madeira, you can enjoy summer heat all year round. The proximity of the Gulf Stream determines the nature of the climate there. Naturally, one of the leading sectors of the economy of Madeira is tourism, attracting connoisseurs of rather expensive luxury leisure to the island.

Blooming gardens and variety of flora make Madeira truly paradise for guests from the most remote parts of the world.

Besides tourists, Madeira represents growing interest for international investors. Many entrepreneurs are tending to register or buy company in Madeira today.

Forms of doing business in Madeira

Given significantly wide range of forms of companies in Madeira, the most effective from a practical standpoint is the registration of companies with limited liability in Madeira. This type of company is most popular among foreign investors.

It is possible to register limited liability company in Madeira in two forms:

  • Public joint-stock company (SA);
  • Private joint-stock company (LDA).

The legislative framework in Madeira

The main legislative act regulating registration and activities of business in Madeira is the "Company Act in Portugal".

SA company registration in Madeira - Main provisions

  • At least 5 shareholders, either natural persons or legal entities, are required for the establishment. The residency does not matter;
  • Minimum amount of the authorized capital shall be equal to € 50 000;
  • By the moment of registration, 30% of the abovementioned amount should be paid. Not more than within the subsequent 5 years, it is necessary to pay the remaining 70%;
  • Issue of registered and bearer shares is permitted. The latter should be paid in full. It is possible to re-issue shares (from registered to bearer shares and vice versa) in accordance with the norms of Portuguese legislation and the company's charter. Shares can be ordinary and privileged. The privileged shares can be:

- without the right to vote, but with the right to receive dividends (from 5% of the par value of shares). Issue of 50% and not more than such shares is allowed.

- fully paid and subject to redemption by the company after the expiry of specified period.

  • The Board of Directors shall manage the company.
  • The company should form reserve fund, the amount of which is 20% of the authorized capital. Before the final formation of the fund, at least 5% of the company's annual income shall be deducted to the fund.
  • The company registrar in Madeira provides official approval of the company's charter and prospectus.

LDA company registration in Madeira - Main peculiarities

  • It is necessary to have 1 or 2 shareholders (natural persons or legal entities, residents of any country) for the establishment;
  • The amount of minimum capital is not set, but each equity position (share) shall have minimum value of 2 EUR;
  • Only registered shares can be issued;
  • Even one director can manage the company.

Regardless of selected form of the company in Madeira, the business owner should undergo standard procedure:

- compile application for the Registrar of Companies for the purpose of obtaining permission to use the company name;

- preliminary contribute minimum capital to the local bank account;

- register the enterprise with the tax authorities, and it is necessary to notify the Financial Department concerning obtaining the taxpayer's card;

- register the company with the Social Security Administration;

- If non-residents of Madeira are employed at the enterprise, the application regarding registration of employment agreements (contracts)  shall be submitted to the Ministry of Employment;

- register with the Commercial Register of the region in which the enterprise is located;

- publish the contents of the company's Charter in the local newspaper;

- books of minutes and accounting books should be registered in the Commercial Register and tax authorities.

Information about directors and shareholders of the company in Madeira is publicly available. There are no requirements regarding the place of storage of the company’s documents.

Taxes in Madeira

The tax rate for all the enterprises in Madeira is uniform and equals to 27.5%.

Miscellaneous taxes include the following:

  • VAT (12%);
  • On dividends (25%);
  • On interest (20%);
  • On royalties or license fee (15%);
  • On payouts on winnings (ranges from 23% to 35%);
  • On income from rentals (15%);
  • On payment for consulting and management services (15%).

Taxes are paid quarterly by advance payments.

Bookkeeping in Madeira

  • Enterprises are required to submit annual audit report;
  • It is also necessary to maintain accounting records;
  • The appointment of state auditor is mandatory for the enterprise which has met two of the following conditions within 2 years after registration:
    - The annual balance equals to € 900,000 and more;
    - In combination with other incomes, the annual turnover is € 2,000,000 and more;
    - The average number of employees is at least 50 people for the year.

Do You need to quickly register or buy company or business in Madeira? We will gladly help! Registration of company in Madeira is the best way to start your own international business in Madeira.

We will register any organizational and legal forms of business (such as trusts, companies, holdings, etc.) for you within the shortest time possible and anywhere in the world.

 

 

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General information
Square770.00
Population247 161.00
CapitalFunchal
Unemployment9.20
State polityrepublic; parliamentary democracy
Telephone code351 291
Place in the world in corruption35
locationAn island in the Atlantic Ocean 1, 000 km from mainland Portugal
ClimateSubtropical climate; avg. maximum temperature (July) +23°; avg. minimum temperature (January) +15°
Literacy rate93.30%
Ethnic groupsHomogeneous Mediterranean stock; citizens of black African descent who immigrated to mainland during decolonization number less than 100,000; since 1990 East Europeans have entered Portugal
National currencyEuro
USD exchange rate0.75
GDP per capita56
Official languagePortuguese
Credit ratingA-
The judiciaryThe Constitutional Court of Portugal, the Supreme Court (Supreme Tribunal of Justice), Appellate courts, comarca, criminal tribunals
Executive authorityMadeira Government. Can not contradict decisions of the Central Government in Lisbon and Portugal override political unity
Legislative authoritiesMadeira Regional Parliament
Corporate information
Opportunity to purchase ready-made companiesНет
Legal systemCivil law
The use of the Cyrillic alphabet in the nameНет
Local registered officeДа
Organizational and Legal FormsLimited Liability Company/Limitada (Lda); Stock Corporations/Sociedades Anónimas (SA); Sociedades Unipessoais (SU) - компании с одним держателем квот (в случае, если опф - Lda company) или одним акционером(SA company); Pure holding company/Sociedade Gestora de Participações Sociais (SGPS)
Indication of BPA in the nameSociedade Anónima (SA)
Local registered agentДа
Shares and share capital
Standard currencyEuro
Information about the beneficiary is disclosed50000
The minimum amount of paid-in capital, nat. currency50000
The minimum amount of the issued capital50000
Bearer sharesНет
Terms of payment of the issued capitalWhen registering
Terms of capital payment70% - upon registration, the remaining 30% - within five years after registration
Possibility to issue shares without par valueНет
Taxation
VATНет
Basic corporate tax rate25.00%
Capital gains taxНет
Currency controlНет
Corporate tax rates detailsUnder certain circumstances, companies licensed to operate in Madeira Free Zone may qualify for reduced 5% corporate tax rate (which may be affected by applicable surcharges).
Stamp dutyНет
Director and Secretary
Minimum number of directors1
The requirement for residency directorsНет
Director of legal entities are allowedДа
The data reveals to the local agentДа
Data field to the public registryДа
The requirement for the presence of the SecretaryНет
Requirement to the residense of the SecretaryНет
Requirements to qualification of the SecretaryНет
Legal entity as the SecretaryНет
Shareholder and beneficiary
Minimum number of shareholders5
Data is entered in the public registerДа
Shareholders residency requirementНет
Information about the beneficiary is disclosedНет
Information may be disclosed to the local agentДа
Shareholders-legal entities are acceptableДа
Reporting
The requirement for filing reportsДа
Open access to reportsНет
Statutory auditНет
The requirement for filing Annual ReturnНет
Open access to the Annual ReturnНет
The requirement for reportsДа
Treaty on avoidance of double taxation (States which signed)65
Membership in the OECDНет
Is it offshore according to Russian legislationДа
Trademark Registration
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